We were approached by the directors of an SPV limited company to help them refinance their first investment property.
The directors are two married couples who live and work in London although none of owns their own home.
They had set up the company to become part-time property developers and landlords.
Their first purchase was a house on Merseyside which they converted into five 1-bed flats.
Now they wanted to refinance it, in order to recoup their refurbishment costs and release funds for further investment.
The number of lenders willing to look at the case was restricted because none of the directors owns their own home, and they only have limited experience of running a multi-unit property.
However, there is one specialist buy to let lender that will consider these cases if the proposal is strong enough, so we approached them and the case has been agreed on the following terms:
Property value: £300,000
Loan amount: £255,000
Rate: 5.39% two year fixed
Term: 25 years interest only
Lender arrangement fee: 2.5% (£6,375)
Mortgage payment: £1,174 pcm
Rental income: £2,600 pcm
Gross yield: 10% pa
Consultant: Gavin Elley, 01625 416390
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